IKAR in Mass Media

Export prices of Russian wheat ease on low demand

13 июня 2023 года

MOSCOW, June 13 (Reuters) - Export prices of Russian wheat declined further last week amid low demand and a new tacit export price floor set by the Russian agriculture ministry, analysts say.

At the same time, the forecast for June exports of wheat from Russia is expected to be, as in May, three times higher than last year.

The price of Russia's new wheat crop with 12.5% protein content, delivered free on board (FOB) from the Black Sea, was assessed at $223 a tonne compared to $225 a tonne the previous week, the IKAR agriculture consultancy said.

The Russia-focused agricultural consultancy Sovecon estimates total Russian wheat exports in June at 2.8-3.2 million tonnes, compared to 1.0 million tonnes in June 2022 and 1.4 million tonnes on average.

As the Vedomosti newspaper reported last week, Russia's Ministry of Agriculture has offered Russian grain exporters a new recommendation for a price cap of $240 per tonne when selling wheat.

"This is likely to limit Russian exports at least short-term as we see from the GASC tender case," Sovecon said.

Egypt's state grains buyer bought 55,000 tonnes of wheat from Russia's Agric SA in a tender last week at $229 per tonne FOB, but traders said the supplier tried to withdraw the offer because it was below an unofficial price floor.

Russia exported 800,000 tonnes of grain last week compared to 730,000 tonnes a week earlier, including 770,000 tonnes of wheat compared to 650,000 tonnes a week earlier, Sovecon wrote in its weekly note, citing port data.

As of June 8, farmers seeded 29.8 million hectares of grains compared to 28.3 million hectares in 2022, including 13.6 million hectares.

"The dry forecast for Siberia and Urals is becoming a bigger problem each week. The regions badly need to get rain in the second half of June," Sovecon said in the report, adding that these regions have planted 7.9 million hectares of spring wheat.

The Ministry of Agriculture announced the start of grain harvesting for the 2023 harvest in the southern regions of the country.

Other Russian data provided by Sovecon and IKAR:

Product:
Most recent data:
Change from week earlier

- Domestic 3rd class wheat, European part of Russia, excludes delivery (Sovecon)
11,200 rbls/t
+100 rbls/t

- Sunflower seeds (Sovecon)
20,875 rbls/t
-500 rbls/t

- Domestic sunflower oil (Sovecon)
64,325 rbls/t
-2,000 rbls/t

- Domestic soybeans (Sovecon)
29,625 rbls/t
-775 rbls/t

- Export sunflower oil (IKAR)
$735/t
+$25/t

- White sugar, Russia's south (IKAR)
$740.65/t
-$10.25

Source: Reuters | #grain | Comments: 0 Views: 6

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